Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) has decided to re-initiate the tendering process for the Ghodbunder–Bhayandar tunnel and elevated road infrastructure project.

Although the Authority’s legal position was upheld at every level, the decision has been taken purely in public interest and to ensure judicious use of taxpayer money, said MMRDA on Friday May 30th via an official statement.

Earlier Larsen & Toubro (L&T) had filed petitions in the High Court on two separate occasions, challenging the tender process. In both instances, the High Court had ruled in favour of MMRDA, affirming that the entire tender procedure was legally sound and technically compliant.

Later, during proceedings in the Supreme Court, L&T claimed that their financial bid was approximately ₹3,000 crore lower. However, their bid had not been opened, as the firm was disqualified for failing to comply with a critical eligibility clause—submitting an affidavit declaring that no bridge built by them had collapsed within two years of completion. This clause was not fulfilled by L&T, resulting in their disqualification.

During the hearing, Justice B.R. Gavai of the Supreme Court explicitly rejected L&T’s plea to overturn the High Court’s ruling. As a result, the decision of the High Court upholding MMRDA’s tender process remains valid and stands reinforced by the Supreme Court.

Nevertheless, Senior Counsel Mukul Rohatgi and Solicitor General Tushar Mehta, representing MMRDA, submitted before the court that in deference to the Court and in the interest of transparency, both tenders would be scrapped and a fresh tender would be issued.

Against this backdrop, MMRDA has voluntarily decided to proceed with a re-tendering process, without prejudice to its legal rights. The Authority is also considering a downward revision of the base project cost by approximately ₹3,000 crore, as a step towards ensuring financial efficiency and greater public value.

This decision exemplifies MMRDA’s commitment to responsible governance, transparency, and protecting the interests of the citizens.

What is Ghodbunder -Bhayandar Tunnel & elevated Rd project

The proposed Ghodbunder Bhayandar tunnel and elevated Rd project is expected to significantly decongest one of the city's busiest arterial stretches.

Megha Engineering and Infrastructure Ltd (MEIL) firm was selected as the lowest bidder.

The ambitious tunnel and elevated tunnel, which span a 5-km tunnel of 14.6-metre diameter, connecting Gaimukh near the mouth of Vasai Creek in Mira-Bhayandar to the Fountain Hotel junction at Shilphata in Thane. The project cost is estimated at Rs 8,000 crore.

The second project, a 9.8-km elevated creek road bridge, will connect Bhayandar with Ghodbunder Road in Thane. The cost of this project is estimated at Rs 6,000 crore. This project will drastically improve connectivity between the eastern and Western suburbs. The travel distance will be saved.